UNIVERSAL REGISTRATION DOCUMENT 2023

7 FINANCIAL STATEMENTS Combined financial statements and notes

3.2.2 Group risk management The Group manages its hedging and exposure according to market levels using a tactical approach in 2023 with a re ‑ exposure on low points and partial capping of equity equities in French and foreign companies that are not listed. They may be held directly or in the form of a venture capital fund (“FCPR”); ❯ shares in French and foreign infrastructure companies. The holding can be direct or through funds. ❯ The proportion of equities and other similar variable ‑ income securities (equity mutual funds) relative to total financial investments (including operating property) in market value was 9.4%, not including exposure to options. Equity instruments include: equities in French and foreign companies listed for trading on regulated markets. Exposure can also be produced in index form and possibly in the form of structured products whose performance is partially indexed to an equity index. They may be held directly or within mutual funds (FCP and SICAV); ❯

3.2.3 These limits are observed by each insurance entity and at the Group level. Any exceeding of limits is handled by the appropriate Risk Committees according to whether it occurred in an entity or at Group level. Equity risk sensitivity analysis The table below shows the impacts on the CSM, result, and equity of a sensitivity analysis conducted in the event of a 25% rise or fall in market prices and indices. Impacts are presented gross of tax. a set of secondary limits with the objective of limiting the equity portfolio’s concentration by sector, issuer, or major type as well as illiquid equity categories. ❯ exposure in a highly volatile market environment. The Group also continued its diversification policy by divesting from unlisted shares. The Group manages equities as part of internal constraints under two distinct logics: a primary limit fixing the maximum permissible exposure to equity risk; ❯

31.12.2023

CSM

Result

Equity

Decrease

(in millions of euros)

Increase

Decrease

Increase

Decrease

Increase

TOTAL

501

(520)

327

(354)

1,108

(1,136)

Investments made by Groupama, within the context of its international subsidiaries, expose it to the net accounting position of entities with a functional currency other than the euro. These are currently the Hungarian forint, Romanian leu, Bulgarian lev, yuan, and Tunisian dinar. These impacts are posted in shareholders’ equity, under foreign exchange adjustment. The table below shows insurance and reinsurance liabilities and assets by currency.

3.3 3.3.1

Currency risk Exposure to currency risk

Exposure to foreign exchange risk for subsidiaries in the eurozone corresponds primarily to their assets subject to exchange rate fluctuations of mutual funds or securities denominated in foreign currencies and mutual funds denominated in euros applying to foreign ‑ currency securities. In practice, portfolios are mainly exposed to exchange risk involving the euro against the dollar, Hungarian forint, Romanian leu, Bulgarian lev, and pound sterling.

31.12.2023

EUR

HUF

USD

GBP

Other

Total

(in millions of euros)

Insurance and reinsurance contract assets

1,867

5

0

0

16

1,889

Insurance and reinsurance contract liabilities

72,038

841

0

0

786

73,665

31.12.2022

EUR

HUF

USD

GBP

Other

Total

(in millions of euros)

Insurance and reinsurance contract assets

1,815

2

0

0

124

1,940

Insurance and reinsurance contract liabilities

69,488

684

0

0

514

70,686

The table below shows the net exposure to currency risk of financial assets by currency

31.12.2023

EUR

HUF

USD

GBP

Other

Total

(in millions of euros)

Net hedging exposure of financial investments to currency risk

79,139

831

741

68

859

81,638

31.12.2022

EUR

HUF

USD

GBP

Other

Total

(in millions of euros)

Net hedging exposure of financial investments to currency risk

73,264

793

940

34

502

75,533

299

Document d’Enregistrement Universel 2023 GROUPAMA ASSURANCES MUTUELLES